Indian Tech Startups Raise $2.5 Billion in Q1 2025, up 8.7% from 2024
According to a report released on Monday, India’s tech startups raised $2.5 billion in the first quarter of fiscal year 2025 (Q1 FY25), reflecting a 13.64% increase from the previous quarter and an 8.7% rise compared to the same period last year.
With this, India maintains its position as the third-highest-funded geography globally, following the United States and the United Kingdom. The Tracxn Geo Quarterly India Tech Report highlights these trends, offering insights into the dynamic startup ecosystem.
Across different investment stages, late-stage startups secured the highest total funding, reaching $1.8 billion in Q1 FY25. This is a significant increase from the $1.3 billion raised in the fourth quarter of FY24. Seed-stage startups raised $157 million, while early-stage startups secured $528 million.
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Delhi-based tech firms accounted for 40% of the total funding raised by tech companies throughout India, followed by Bengaluru with 21.64%. Top investors in Q1 FY25 included Accel, Blume Ventures, and Peak XV Partners, who were also the top all-time investors.
Venture Catalysts, Unicorn India Ventures, and YourNest led seed-stage investments, while Avataar Ventures and Sofina were the top late-stage investors. Accel, Peak XV Partners, and Vertex Ventures were the top early-stage investors for the quarter.
The report also identified the top-performing sectors during Q1. Auto tech saw a surge in funding, reaching $1.1 billion, a substantial increase from $214.6 million in Q4 FY24. Enterprise applications attracted $650.7 million, up 21.94% from the previous quarter, while retail recorded $481.5 million, a 21.67% increase.
Notably, six companies completed initial public offerings (IPOs) in Q1 FY25. However, unlike the previous year, no new unicorns were created in this quarter.
A total of 38 acquisitions took place in Q1 FY25, marking a 15.15% increase quarter-over-quarter and a 40.74% rise compared to the 27 acquisitions of Q1 FY24. The largest deal involved the acquisition of Magma General by DS Group and Patanjali Ayurved for $516 million, making it the highest-valued acquisition of the quarter.
Speaking at the report’s launch, Neha Singh, co-founder of Tracxn, commented, “While the funding environment remains dynamic, India’s startup ecosystem continues to demonstrate adaptability and growth. Key sectors like auto tech, enterprise applications, and retail are attracting investor interest, and the rise in acquisitions signals a maturing market.”
